Euro Strengthens on CPI Surprise, Yen Extends Post BoJ Selloff
Euro emerges as a strong one today after a number of volatility triggering events. Upside surprise in Eurozone inflation is a key factor lifting the common currency higher. Australian Dollar is also strong, competing with Euro for the biggest gainer today. Meanwhile, stronger than expected GDP data lifted Canadian...
BOJ Introduced Forward Guidance and Made Subtle Changes in YCC
BOJ made some changes in its unconventional monetary policy in July. We believe these changes sent a dovish message that it takes longer time than previous anticipated for inflation to reach the +2% target. At this meeting, BOJ introduced forward guidance reinforcing the commitment to keep for policy rate...
Yen Spikes Lower after BoJ, But No Follow Through Selling Yet
Yen spikes lower broadly after BoJ announced to strengthen the framework for continuous powerful easing. But at this point, there is no follow through selling seen yet. Instead, of raising the target on 10 year JGB yields, BoJ simply allow flexibility to move it in move directions of up...
Fed Prepares for Rate Hike in September
The upcoming FOMC meeting later this week aims at preparing the market for another +25 bps rate hike in September. As no press conference and economic projections would follow the August meeting, the post-meeting statement, and the minutes in three weeks, would be used for communication and setting expectations....
Unclear Direction in Forex Markets, Yen Softer ahead of BoJ
Euro and Swiss Franc are lifted in earlier today but was then out-performed by New Zealand Dollar. On the hand, Yen and Australian Dollar are trading as the weakest ones, followed by Dollar. Direction in the forex markets is relatively unclear as traders turned a bit cautious ahead of...
Renminbi/Chinese Yuan Depreciates as a Result of Economic Weakness and Loosening Policies
Renminbi’s depreciation since April this year has accelerated over the past two months. While USDCNY has in aggregate rallied over +6% in June and July, renminbi’s weakness was less pronounced against a basket of currencies. The CEFTS index, the official reminbi index, fell -4.4% over the past two months....
Forex Markets Steady, But Volatility Guaranteed in an Unusually Busy Week ahead
Dollar opens the week broadly firmly, followed by Sterling as the second strongest. On the other hand, Australian Dollar is trading with and broad-based soft tone, followed by Canadian Dollar. Nonetheless, all major pairs and crosses are bound in Friday's range only, suggesting that they're in consolidative mode. In...
Only USD and EUR Maintained Net Length Positions amidst Monetary Policy Divergence
As suggested in the CFTC Commitments of Traders report in the week ended July 24, bets on a higher US dollar increased modestly by +1 818 contracts. However, thanks to a -4 529 reduction in short positions, NET LENGTH for USD Index (DXY) futures added +6 347 contracts to 25...
Traders Bet for Higher Fuel Prices as Crude Oil In Correction
According to the CFTC Commitments of Traders report for the week ended July 24, net LENGTH for crude oil futures declined -20 823 contracts to 610 471. Net LENGTH for heating oil futures increased +1 689 contracts to 41 712 while that for gasoline rose 2 860 contracts to 99...
CAD, JPY and USD Ended as the Strongest in a Week of Trade Talk and Surging Yields
EU-US trade talk and surge in yields in Japan and the US were the two major themes last week. But it was Canadian Dollar which quietly ended as the strongest one last week. US holding off car tariffs is definitely a positive for Canada and could clear the way...
Dollar Firm But Lacks Upside Momentum after Solid Yet Unspectacular GDP
Dollar stays firm in early US session after US delivered a solid yet unspectacular GDP report. While the greenback attempts strengthen today, so far, it's held in range against all other major currencies. There is no committed buying in Dollar up to this point. Yen is trading as the...
Yen Firm as JGB Yield Rally Persists, Dollar Looks into Q2 GDP
Yen remains generally firm today with help from strength in JGB yields. 10 year JGB yields hit as high as 0.113 and is now hovering at around 0.10. Nonetheless, Yen is outperformed by Canadian Dollar, which is lifted by NAFTA optimism. While the greenback is softer today, downside is...
Euro Mildly Lower after Balanced Yet Uninspiring Draghi, Dollar Picking Up Strength Slightly
Euro weakens slightly against Dollar after ECB left monetary policy unchanged as widely expected. President Mario Draghi delivered a balanced yet Uninspiring press conference. Fresh buying is seen in Dollar in early US session and the greenback has overtaken Yen as the strongest major currency for today. But it's...
Euro & Dollar Softer after Trade Talk Breakthrough, Canada Emerges as Clear Winner
While it appeared that there was a breakthrough in EU-US trade negotiation, the news provide no lift to Dollar nor Euro. Both are trading mixed in Asian session. Indeed, Dollar is the weakest one for the week so far, followed by Euro as the second weakest. On the other...
Dollar and Euro Soft With Master of Deal vs Brutal Killer on the Card
Dollar and Euro are trading generally lower today, except versus Australian Dollar. The meeting between Donald "master of deal" Trump and Jean-Claude "the brutal killer" Juncker is closely watched. But it's highly unlikely to yield any results on trade. Trump's recent threat on tariffs on all Chinese products, the...
Daily Report: Euro and Dollar Mixed ahead of the Juncker-Trump Meeting
Sterling appears to be lifted by the news that UK Prime Minister Theresa May has taken over Brexit negotiation. That raised the chance of some speedier conclusions as well as more unified position, as least in front of the EU. The pound is trading as the strongest one for...
Euro Gain Capped by Lackluster PMIs, Dollar Turns Soft
While the Japanese Yen is staying generally firm, Dollar fail to hold on to earlier gains and turns softer. While Euro strengthens mildly against Dollar, it's upside is limited by lackluster PMI data. On the other hand, thanks to strong global risk appetite Australian and New Zealand Dollar regain...
Treasury Yields Continue to Support Yen and Dollar, Risk Appetite Ignored
Yen and Dollar are trading as the strongest ones for today and the week, as boosted by treasury yields. In particular, the Yen shrugs off strong risk appetite in Asia, as led by Chines stock markets. 10 year JGB yield opened higher at 0.088 and stays firm at around...
Yen Pares Gain While Dollar Attempts Rebound
Yen is paring some gain in early US session but remains the strongest one for today, followed by Swiss Franc. Meanwhile, Australian Dollar overtakes Dollar as the weakest one. Euro follows as the second weakest as pressured in crosses. Dollar is trying to recover against other but there is...
Sharp Rally in 10 Year JGB Yield Takes Yen Higher, Dollar Stays Weak
Yen trade broadly higher today as boosted by the steep rally in 10 year JGB yield. That also sends Nikkei sharply lower as it's down -333 pts or -1.47% at the time of writing. Other Asian markets are steady thought with China Shanghai SSE trading up 0.37% and Hong...